Correlation Between SD Standard and Zhihu
Can any of the company-specific risk be diversified away by investing in both SD Standard and Zhihu at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SD Standard and Zhihu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SD Standard Drilling and Zhihu Inc ADR, you can compare the effects of market volatilities on SD Standard and Zhihu and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SD Standard with a short position of Zhihu. Check out your portfolio center. Please also check ongoing floating volatility patterns of SD Standard and Zhihu.
Diversification Opportunities for SD Standard and Zhihu
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SDSDF and Zhihu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SD Standard Drilling and Zhihu Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhihu Inc ADR and SD Standard is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SD Standard Drilling are associated (or correlated) with Zhihu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhihu Inc ADR has no effect on the direction of SD Standard i.e., SD Standard and Zhihu go up and down completely randomly.
Pair Corralation between SD Standard and Zhihu
If you would invest 353.00 in Zhihu Inc ADR on April 17, 2025 and sell it today you would earn a total of 116.00 from holding Zhihu Inc ADR or generate 32.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.36% |
| Values | Daily Returns |
SD Standard Drilling vs. Zhihu Inc ADR
Performance |
| Timeline |
| SD Standard Drilling |
| Zhihu Inc ADR |
SD Standard and Zhihu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SD Standard and Zhihu
The main advantage of trading using opposite SD Standard and Zhihu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SD Standard position performs unexpectedly, Zhihu can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Zhihu will offset losses from the drop in Zhihu's long position.| SD Standard vs. Pinterest | SD Standard vs. The Gap, | SD Standard vs. Weibo Corp | SD Standard vs. Infosys Ltd ADR |
| Zhihu vs. DouYu International Holdings | Zhihu vs. Tencent Music Entertainment | Zhihu vs. Weibo Corp | Zhihu vs. Tuya Inc ADR |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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